Future of Discovery Family?

[ariablaze]

i like the newer animated stuff on DF especially Steven Universe and things from the Looney Tunes franchise as well. at least DF hasn't forgotten its Hub roots and it isn't just filled with boring reality shows. it being partially owned by WB is a good advantage.

 

[FirePuppy]

I just found out in the most recent annual report that Hasbro's investment in DFC just plummeted 95% from $102 million all the way down to $5.6 million. On top of this, neither of the channel's owners had "exercised the option or put right to require WBD to acquire the Company's remaining ownership in DFC", and the option's fair market value has now gone bankrupt.

Source: https://investor.hasbro.com/node/37071/html

What do you suppose this means?

IMO, odds are, the channel is going to shut down like Universal Kids, except this channel will die a joint venture, due to the facts shown above, which could happen by the end of 2025, where MLP's priority window is set to last to.

 

[E-Scope]

It may close.

 

[FirePuppy]

It may close.

That's what I said.

 

[SpecialColorfull]

I think it might be the exact opposite. Now that they DONT SPEND any money it will be easy for the channel to be profitable with minimal effort.

 

[FirePuppy]

I think it might be the exact opposite. Now that they DONT SPEND any money it will be easy for the channel to be profitable with minimal effort.

I'm afraid that isn't possible. The fair market value of the option started by Hasbro and Discovery back in 2014 has to be a non-zero positive number for either of them to continue operating the channel. If the value goes bankrupt, the companies will have no choice but to shut down the channel together.

 

[Stumpos]

I just found out in the most recent annual report that Hasbro's investment in DFC just plummeted 95% from $102 million all the way down to $5.6 million. On top of this, neither of the channel's owners had "exercised the option or put right to require WBD to acquire the Company's remaining ownership in DFC", and the option's fair market value has now gone bankrupt.

Source: https://investor.hasbro.com/node/37071/html

What do you suppose this means?

IMO, odds are, the channel is going to shut down like Universal Kids, except this channel will die a joint venture, due to the facts shown above, which could happen by the end of 2025, where MLP's priority window is set to last to.

Then do you have any data for Boomerang and if that may close too? Same for Disney XD since they have worse ratings than DFC?

 

[FirePuppy]

Then do you have any data for Boomerang and if that may close too? Same for Disney XD since they have worse ratings than DFC?

Those channels are each only owned by one company, and only they themselves can decide what to do with them. DFC is a joint venture.

 

[SpecialColorfull]

You just said they spent 5 million, that's more than zero isnt it?

 

[FirePuppy]

You just said they spent 5 million, that's more than zero isnt it?

No, no, that was Hasbro's investment on the channel in 2024. What I was talking about was the fair market value of the option to acquire Hasbro's remaining 40% ownership of it, which was once about $22 million before Discovery merged with Warner Bros., whereas the investment in Discovery Family at the time was 10 times that.

Without any money in the fair market value of the option to require Discovery to acquire the Company's remaining ownership in DFC, not to mention all the losses the channel suffered, it cannot operate any longer, leaving the two companies with no choice but to shut it down.

 

[superkeegan9100]

so Discovery Family's... just going to shut down

 

[Stumpos]

so Discovery Family's... just going to shut down

Gonna be the end of an era after 15 years since Hub Network began.

 

[superkeegan9100]

Gonna be the end of an era after 15 years since Hub Network began.

and the channel space created by Discovery Kids in 1996 will cease to exist

 

[PinkieLopBun]

so Discovery Family's... just going to shut down

Is there a source for this?

 

[LinusFan303]

so Discovery Family's... just going to shut down

I will say it won't be closing anytime soon.

 

[superkeegan9100]

Is there a source for this?

That was meant to be a question since I was replying to this

I'm afraid that isn't possible. The fair market value of the option started by Hasbro and Discovery back in 2014 has to be a non-zero positive number for either of them to continue operating the channel. If the value goes bankrupt, the companies will have no choice but to shut down the channel together.

 

[FirePuppy]

I will say it won't be closing anytime soon.

At least not until the end of 2025, when MLP's current priority window ends. What I was trying to tell you is that according to the most recent annual report, it states that "neither party had exercised the option or put right to require WBD to acquire the Company's remaining ownership in DFC", and "at December 29, 2024, the fair market value of this option was zero" (in other words, that value is now bankrupt). Furthermore, Hasbro's investment in DFC plummeted to $5.6 million in 2024 (before this, it was always at least 15-20 times that or more). With an investment like this, Hasbro's shows won't be affordable to stay on the channel for long, no matter how long the channel lasts.

 

[PinkieLopBun]

Because Hasbro didn’t sell their stake in the channel by March 31, it’s now categorized differently. WBD now sees Hasbro as a regular part owner, not a partner that’s expected to sell their shares by a certain date.

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001437107/000143710725000096/disca-20250331.htm#fact-identifier-932

 

[FirePuppy]

Because Hasbro didn’t sell their stake in the channel by March 31, it’s now categorized differently. WBD now sees Hasbro as a regular part owner, not a partner that’s expected to sell their shares by a certain date.

All I see from that source is: "Hasbro Inc. (“Hasbro”) had the right to put the entirety of its remaining 40% interest in Discovery Family to the Company. Hasbro did not exercise the right by the election period expiration date of March 31, 2025. As of March 31, 2025, Hasbro’s noncontrolling interest was reclassified from redeemable noncontrolling interest to noncontrolling interest outside of stockholders’ equity on the Company’s consolidated balance sheets."

If this is true, then now, I just want the whole channel to shut down altogether someday, like Universal Kids did. Besides, Discovery Family is still preventing distribution of Seasons 5-9 of MLP back on Netflix:

https://x.com/BlackQueenReact/status/1918972987681788004

 

[Stumpos]

All I see from that source is: "Hasbro Inc. (“Hasbro”) had the right to put the entirety of its remaining 40% interest in Discovery Family to the Company. Hasbro did not exercise the right by the election period expiration date of March 31, 2025. As of March 31, 2025, Hasbro’s noncontrolling interest was reclassified from redeemable noncontrolling interest to noncontrolling interest outside of stockholders’ equity on the Company’s consolidated balance sheets."

If this is true, then now, I just want the whole channel to shut down altogether someday, like Universal Kids did. Besides, Discovery Family is still preventing distribution of Seasons 5-9 of MLP back on Netflix:

https://x.com/BlackQueenReact/status/1918972987681788004

Why is it so important that DFC shut down? It isn't doing anything wrong by existing. Like, you seem hyperfixated on just DFC and ignoring the state other networks are in.

Again, there is zero source that airing on DFC prevents Netflix from having MLP seasons 5-9. After all, if Tubi TV has the entire run, then I doubt DFC is the reason for Netflix not having it.